In 2018, Oscar purchases $2,150,000 of equipment. The taxable income of the business before any Section 179 deduction is $20,000. What is Oscar's maximum Section 179 deduction in 2018?

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The maximum Section 179 deduction Oscar can take is limited to the taxable income of the business, which is $20,000. Section 179 allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year, but the deduction cannot exceed the taxable income of the business.

In 2018, Oscar Purchases $2,150,000 of Equipment